Monday, September 10, 2018

China's Financial Commitments to Africa

Brookings published on 5 September 2018 an analysis titled "China's 2018 Financial Commitments to Africa: Adjustment and Recalibration" by Yun Sun.

The author looks at the changing nature of Chinese financing to Africa by comparing its $60 billion financial package at the 2015 Forum on China Africa Cooperation (FOCAC) with the $60 billion pledge at the recently completed FOCAC in Beijing. Over the past three years, China has developed growing concerns about the returns and commercial viability of its financing in Africa. The overwhelming majority of Chinese financing to Africa has been loans of various kinds, not grants or investment. The goal now is towards more investment.